Meta Platforms Inc. (META)

Days of sales outstanding (DSO)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Receivables turnover 9.64 10.59 10.28 10.57 8.29 9.77 9.60 10.60 8.64 10.51 10.35 10.49 8.39 9.28 8.95 9.17 7.57 9.83 10.03 10.05
DSO days 37.87 34.46 35.50 34.53 44.01 37.38 38.02 34.44 42.24 34.74 35.27 34.79 43.51 39.33 40.80 39.79 48.21 37.14 36.40 36.33

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 9.64
= 37.87

Days Sales Outstanding (DSO) is a measure that indicates the average number of days it takes for a company to collect revenue after a sale has been made. For Meta Platforms Inc., the DSO has shown some fluctuations over the periods analyzed.

From March 31, 2020, to September 30, 2020, the DSO remained relatively stable, hovering around the mid to high 30s. However, there was a noticeable increase in DSO to 48.21 days by December 31, 2020, indicating a potential delay in collecting revenues.

Subsequently, Meta Platforms Inc. managed to reduce its DSO to around 39 to 43 days for the periods up to December 31, 2021. This improvement suggests enhanced efficiency in collecting payments from customers.

The company then experienced a significant drop in DSO to 34.44 days by March 31, 2023, potentially indicating more prompt collection of revenue. However, the DSO increased again to 44.01 days by December 31, 2023, before falling back to the mid-30s range by December 31, 2024, showing some volatility in collections efficiency.

Overall, the trend in Meta Platforms Inc.'s DSO suggests varying levels of effectiveness in managing accounts receivable and collecting payments from customers over the analyzed periods.

See also:

Meta Platforms Inc. Average Receivable Collection Period (Quarterly Data)